Since it was first uttered in the early 1990s, the phrase “It’s the economy stupid” has been used and misused extensively. Let’s squander the lexicon one more time.
The US ‘silly’ political season is well underway and forecast to last almost 13 more months—no telling what voodoo economics will emerge. Those of us with our business noses to the grindstone must ride this stormy weather to a safe port next November.
Most have an interest in the macroeconomic policies nation states put forth but other than voting and perhaps lobbying, there is little many can do to materially impact the economy. What we can do is focus on the economics of our business—CAPEX. Hence, our daily mantra should be, “It’s the Economics Stupid.”
What Is Your Value to the Customer?
For over the fifteen our organization has been, “Helping Clients Achieve Organizational Agility, Resiliency and Sustainability.” Assisting clients develop and articulate a viable economic value proposition has been one of the most elusive and vexing challenges.
There is a strong tendency to make statements that are Overstated, Not Demonstrable, and Not Defendable. Declarations such as, “Enhanced credit control system for partners through increased information visibility” are effectively meaningless—yes, this is an actual quotation from a software company. Customers are left with the question, “What does that mean for me?”
Translate Technology into the Language of Business
If you leave your customer with the above and/or other questions regarding your value to their enterprise, likely the sale will not close. Probably, a more coherent competitor will leave with the deal.
CAPEX always undergoes extensive scrutiny; even at the Board level in some cases. While new and cool technology may ultimately be disruptive and of extremely high value, peddlers must speak the language of the Chief Financial Officer and her staff. These are ‘green’ deals!
Those tasked with generating revenue from technological solutions must also take on the role of translator. Bridging the cultural differences between cool stuff and the bottom line requires a Rosetta Stone.
The Economic Value Proposition Matrix® model (EVPM) was originally developed with a Super Independent oil and gas operator at the first part of the century to become that Rosetta Stone. Working with customers, technology providers can now prepare for the inevitable decision by the CFO. Usually, the vendor will not attend said meeting but preparing the customer staff to make the case is mandatory.
This video tells the whole story in less than 43 minutes. Is winning your next deal worth an investment of three quarters of an hour? If not, keep doing what your doing and hope for a different result.
The video makes the case that technology offerings often seems similar. The same buzzwords and euphemisms often confused clients and make it appear that since the solutions are basically the same, just go with the low dollar. Rising above this clutter is required to be successful.
How is Your Value Proposition Better Than Your Competitors’?
For More Information
Please note, RRI does not endorse or advocate the links to third party materials. They are provided for education and entertainment only.
You can contact the author more information as well.